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Here are a few tips that can be easily integrated into your daily routine that can help you better manage your budget and avoid going into debt and eventually insolvency:

• Make a monthly budget. Divide expenses into two categories: “subsistence” expenses such as rent and groceries, and discretionary expenses. Calculate your subsistence expenses precisely and withdraw from your bank account what is left for discretionary expenses during the month;
• Pay in cash money. Seeing the cost of a discretionary purchase with bills could make you realize that it is too expensive for your budget;
• Calculate the time required based on your hourly rate to pay for a discretionary item;
• Set aside a portion of your salary as an emergency fund to pay for unforeseen expenses and to realize certain projects (vacations, birthdays, etc.);
• Respect your budget. It can be difficult at first to stick to the budget, especially if it’s the first time, but integrating this tool into your life is the first step to financial success.

Before concluding insolvency, it is important to recognize the warning signs:

• You always spend more than your monthly budget allows;
• You use your credit cards every month to make ends meet;
• You pay one credit card with another;
• You resort to high-interest quick loans;
• You resort to salary advances;
• You borrow money from family and friends;
• You fall behind on payments, have difficulty making minimum payments before the due date, or write checks without sufficient funds;
• Your wages have been seized for child support arrears or other debts;
• You only pay monthly interest on your credit cards without reducing the principal over several months;
• You are threatened with service cuts by Hydro-Québec, Vidéotron, Bell, etc.;
• Your creditors demand repayment, threaten legal action, or hire a collection agency.

To find out the best solution for you, you need to make an appointment with one of our advisors. Each situation is different and after the meeting, you will have a clear and precise idea of your situation and the solutions available to you. The best solution for you depends on several factors. The M. Roy & Associés advisor can guide you towards the most appropriate solution for your particular situation in the context of a free, confidential and non-judgmental meeting.”

No. Most of our debt solutions allow you to keep all your assets. We always strive to prioritize the solution that is best suited to your situation and that allows, when possible, to preserve your personal assets.

During the first consultation, the M. Roy & Associés advisor will establish a clear picture of your financial situation by asking you questions about your assets, debts, and income/expenses. In fact, the first step when experiencing financial difficulties is to consider our income and expenses within the framework of a monthly budget. This exercise will allow you to have an overall picture of your income and expenses and to determine where the problems lie.

Once the issues are identified, the advisor can discuss possible options with you in your particular situation. For example, if you don’t have many creditors, it is sometimes possible to make special arrangements with each of them to reduce payments and the applicable interest rate.

Another possible alternative is debt consolidation, which is borrowing a sufficient amount of money from a financial institution to repay all of your small creditors. This loan is often spread over a period of 5 years. It involves converting several high-interest debts into a single debt with a lower interest rate. To learn more about debt consolidation, click here.

If these options are not possible, you could then consider a consumer proposal, which is described here. In summary, it is an offer prepared and presented by us to your creditors whereby you offer a sum of money to your creditors payable over a maximum period of 5 years and which fits within your monthly budget. This option also allows you to keep your assets.

Finally, when other options are not suitable, bankruptcy may be the best solution in certain circumstances. The advantage of bankruptcy is that it is a definitive, quick, and usually less expensive solution than other options. Also, it is false to believe that you will lose all of your assets in bankruptcy. The advisor can provide you with more detailed information on the assets you can keep.

It’s only logical to be concerned about the impact of your decision on your credit report.

The first thing to do is to request a copy of your credit report from the two credit bureaus operating in Canada, namely Equifax and TransUnion. There is no charge for this process.

Note that debt consolidation will not harm your credit file. However, you will need to be eligible for the consolidation loan, whose interest rate will be between 12% and 14%.

Both the consumer proposal and the bankruptcy will have an impact on your credit report. The first one will give you an R-7 rating for 3 years after the end of your proposal. The second will give you an R-9 rating for 6 years after discharge in the case of a first bankruptcy and 14 years in the case of a second bankruptcy.

Remember that credit can be rebuilt and starting over is often the best option. The longer you maintain your high debt level, the more your credit deteriorates over time. Sometimes, it is better to act quickly to significantly reduce your debt in order to get back on your feet quickly.